The topics’ distribution on the materiality matrix, across three distinct tiers, provides useful insights on how to understand and manage each topic in the short, medium and long term.
The first tier is made up of the 14 priority topics that are the most material to both Danone’s external stakeholders and the company’s business success. These topics are intimately linked to Danone’s evolving business model. They are core to the activation and delivery of Danone’s ‘One Planet. One Health’.
The second tier is a cluster of major topics for creating medium and long term value. Many of these topics are already being addressed by Danone through policy development, target setting, local projects management, etc.
The third tier of topics includes compliance-driven matters and emerging topics . These topics are to be addressed through compliance, monitoring and ongoing management.
Interdependence of topics
Material topics do not exist independently; they are linked to one another and their position on the matrix should be understood accordingly. For instance:
The broader topic of climate change mitigation and adaptation (second tier - dark blue) is closely linked to more specific topics such as product eco-design, packaging and circular economy ; sustainable sourcing of raw materials and diverse and locally relevant models of sustainable farming and land use (all three topics being in the first tier).
The wider topic of human rights in the supply chain (second tier - medium blue) is also intimately connected to sustainable procurement as well as fair relationships and pricing with suppliers and farmers (both topics being in the first tier).
Workplace diversity and inclusion (third tier - light blue) is part of the bigger strategic imperative to develop a diversified product portfolio in line with local consumer needs and diets (first tier)
Exploring the interdependence of these topics helps us identify the necessary system-wide approaches to put in place in order to drive progress.
Single axis topics materiality
It is also important to highlight that some topics may be crucial only externally (to stakeholders) or only internally (to business success). As a consequence, Danone considers them as key and they are addressed strategically even though they may not be located in the first tier of the matrix.